Arevon Energy has secured a US$250m tax equity commitment from Wells Fargo for the two-phase, 430MW Kelso solar project in Scott County, Missouri.
The US$500m project is Arevon's first utility-scale renewable energy project in Missouri and is under construction. The first phase is expected to achieve commercial operations by the end of 2025 and the second phase is estimated to start operations in Q1. Arevon will own and operate the project on a long-term basis.
Sponsor counsel was provided by Amis, Patel & Brewer; sponsor tax counsel was Stoel Rives; tax equity counsel was Sheppard Mullin; sponsor local counsel was Husch Blackwell; and tax equity local counsel was BCLP.
In March, Arevon closed on a US$509m green loan for Kelso. The financing comprised a US$245m bridge loan, US$172m construction loan and US$92m letter of credit. CIBC was administrative agent with Commerzbank, Commonwealth Bank of Australia, Lloyds and National Bank of Canada as coordinating lead arrangers.
The latest tax equity transaction brings Arevon's aggregate solar and energy storage project financings to US$4.5bn within the last two years. The company is growing its Midwest portfolio by constructing two large-scale solar projects in Indiana, preparing to start construction on its Big Muddy solar project in Illinois and advancing development on other proposed renewable energy facilities in the region.
